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Is signing a prenuptial agreement the best option in Colorado?

Few things in life are certain, which is exactly why many people take steps to prepare for the future by setting up retirement funds and other investments. At the same time, many people may not know how to approach their marriage, a major life event that has a variety of implications, in the same way. Fortunately, Littleton residents may have options to plan ahead for whatever the future may hold.

Prenuptial agreements are one of the best ways both parties entering into marriage can protect themselves. By clearing up the terms of a potential split before exchanging vows, couples may be able to minimize the heartache and stress that often accompanies divorce.

Although prenuptial agreements are seen by observers as a solid form of financial protection when heading into marriage, it may not be the easiest subject to talk about between soon-to-be married couples. If a prenuptial agreement isn't a feasible option, there may be other measures to take under Colorado law.

Some individuals have found that forming a trust can be a viable way to protect personal assets without having to sign a prenuptial agreement. In fact, certain types of trusts allow you to put assets in a trust while only listing yourself as a beneficiary. However, it is important to note that regulations surrounding trusts do vary from state to state. As such, it may be worthwhile to check with an attorney to see what options exist in Colorado.

Of course, no two couples enter into a marriage with the same exact needs or financial situation. A prenuptial agreement may be a great solution for many couples, but might not be the right fit for others. This is why it's important to see what can be done to ease the asset division process in the event of divorce.

Source: Barron's, "Divorce Trusts," Tatiana Serafin, May 18, 2013

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